Exide Industries Ltd. v. Union of India

292 ITR 470High Court2007#242 most cited

What is Exide Industries Ltd. v. Union of India authority for?

The Calcutta High Court held that restricting deduction for leave encashment via Section 43B(f) was arbitrary and contrary to Supreme Court decisions. However, this judgment was later stayed by the Supreme Court.

320

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Exide Industries Ltd. v. Union of India · 292 ITR 470 · section 43B(f) · leave encashment · deduction · arbitrary · unconscionable · stay order · Supreme Court

Also reported as

164 Taxmann 9

Sections most often in play

Section 143(3)Section 43BSection 14ASection 263Section 43B(f)Section 10(20)Section 11Section 12A

Issues it is cited on

section 43b(f)section 32(1)(iia)additional depreciationsection 43bsection 43penalty under section 271(1)(c)revenue expenditurefurnishing inaccurate particularscapital expendituresection 32penalty u/s 271(1)(c)section 115jb

Judgments citing Exide Industries Ltd. v. Union of India

Century Enka Limited, Pune vs. DCIT, Circle - 6, Kolkata

In the result, the appeal of revenue is allowed for statistical purposes and that of the assessee is partly allowed

ITA 335/KOL/2012[2008-09]Status: DisposedITAT Kolkata18 May 2016AY 2008-09

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Akash Mansinka, FCAFor Respondent: Shri Niraj Kumar, CIT, DR & Shri A. K. Sinha, JCIT, Sr. DR
Section 143(3)Section 32(1)(iia)Section 43B

…ITA No.665/K/2012 & ITA No. 335/K/2012 M/s. Century Enka Limited. AY 2008-09 provision made for leave encashment by placing reliance on the decision of the Hon’ble Calcutta High Court in the case of Exide Industries Ltd. reported in Vs. Union of India (2007) 292 ITR 470 (Cal) but Ld. Sr. DR before us argued that subsequently Hon'ble Supreme Court has stayed this judgment of Hon'ble jurisdictional High Court vide order dated 08-05-2009 by following observations:- “Pending hearing and final disposal of the Civil Appeals, Department is restrained from recovering penalty and interest which has accrued till date. It…

West Bengal State Warehousing Corporation, Kolkata vs. DCIT, Circle -2, Kolkata

In the result, ITA No. 1761& 1762/Kol/2011 are allowed and ITA No

ITA 1761/KOL/2011[2003-04]Status: DisposedITAT Kolkata11 May 2016AY 2003-04

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri T. P. Kar, FCAFor Respondent: Shri Sallong Yaden, Addl. CIT, Sr. DR
Section 254Section 35D

…1763/Kol/2011 WB State Warehousing Corporation AY 2003-04, 2005-06 & 2007-08 9. At the time of hearing, Ld. Counsel for the assessee argued that this issue is pending before Hon’ble Supreme Court in the case of Exide Industries Ltd. Vs. Union of India (2007) 292 ITR 470 (Cal) but he fairly conceded that subsequently Hon'ble Supreme Court has stayed this judgment of Hon'ble jurisdictional High Court vide order 08-05-2009 by following observations:- “Pending hearing and final disposal of the Civil Appeals, Department is restrained from recovering penalty and interest which has accrued till date. It is made clear t…

ACIT, Gulbarga vs. M/S Krishna Grameena Bank, Gulbarga

In the result, the appeal of Revenue is partly allowed

ITA 592/BANG/2014[2010-11]Status: DisposedITAT Bangalore06 May 2016AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodiaassessment Year : 2010-11

For Appellant: Shri Sanjay Kumar, CIT-III(DR)For Respondent: Shri G. Venkatesh, Advocate
Section 43B

…d in directing the AO to allow the actuarial valuation of privilege leave encashment without considering the fact that the Hon'ble Apex Court stayed Page 2 of 12 the operation of the judgment of Calcutta High Court in the case of Exide Industries Ltd vs UOI, 292 ITR 470.” 3. It was submitted by the ld. DR of Revenue that ground Nos. 1 & 7 are general. Regarding ground No.2, he submitted that the ld. CIT(Appeals) has followed the judgment of Hon’ble Calcutta High Court rendered in the case of Exide Industries Ltd. v. UOI, 292 ITR 470 but this judgment has been stayed by the Hon’ble Apex Court as per judgment dat…

Universal Cables Limited, Kolkata vs. D.C.I.T Cir - 6, Kolkata.

In the result, appeal of assessee is allowed for statistical purposes

ITA 679/KOL/2013[2008-2009]Status: DisposedITAT Kolkata04 May 2016AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Sanjay Bhaumik, AdvocateFor Respondent: Shri Hari Sankar Kumar Lal, CIT, DR
Section 143(3)Section 43B

…for Leave Liability is withdrawn.” 3. Ld. Counsel for the assessee in view of the above additional ground regarding leave liability argued that this issue is pending before Hon’ble Supreme Court in the case of Exide Industries Ltd. Vs. Union of India (2007) 292 ITR 470 (Cal) but he fairly conceded that subsequently Hon'ble Supreme Court has stayed this judgment of Hon'ble jurisdictional High Court vide order 08-05-2009 by following observations:- “Pending hearing and final disposal of the Civil Appeals, Department is restrained from recovering penalty and interest which has accrued till date. It is made clear t…

Merck Ltd, Mumbai vs. DCIT 7(2)(1), Mumbai

In the result, the appeal of the Assessing Officer for the assessment year

ITA 1222/MUM/2015[2009-10]Status: DisposedITAT Mumbai31 Mar 2016AY 2009-10
Section 133(6)Section 143(3)

…sallowance of Rs 16,53,013 under section 43B(f) of the Act. 42. Learned representatives fairly agree that this issue is covered, in favour of the assessee by Hon’ble Calcutta High Court’s judgment in the case of Exide Industries Ltd Vs Union of India [(2007) 292 ITR 470 (Cal)] but the said decision, holding section 43B(f) to be constitutionally invalid, is stayed by Hon’ble Supreme Court. As the said decision is stayed by Hon’ble Supreme Court, we see no reasons to interfere in the matter. The disallowance must stand confirmed for the time being. 43. Ground no. 6 is, accordingly, dismissed. 44. In ground no. 7…

DCIT Cir 7(2)(1), Mumbai vs. Merck Ltd, Mumbai

In the result, the appeal of the Assessing Officer for the assessment year

ITA 1172/MUM/2015[2010-11]Status: DisposedITAT Mumbai31 Mar 2016AY 2010-11
Section 133(6)Section 143(3)

…sallowance of Rs 16,53,013 under section 43B(f) of the Act. 42. Learned representatives fairly agree that this issue is covered, in favour of the assessee by Hon’ble Calcutta High Court’s judgment in the case of Exide Industries Ltd Vs Union of India [(2007) 292 ITR 470 (Cal)] but the said decision, holding section 43B(f) to be constitutionally invalid, is stayed by Hon’ble Supreme Court. As the said decision is stayed by Hon’ble Supreme Court, we see no reasons to interfere in the matter. The disallowance must stand confirmed for the time being. 43. Ground no. 6 is, accordingly, dismissed. 44. In ground no. 7…

Merck Ltd, Mumbai vs. DCIT RG 6(3), Mumbai

In the result, the appeal of the Assessing Officer for the assessment year

ITA 1946/MUM/2014[2009-10]Status: DisposedITAT Mumbai31 Mar 2016AY 2009-10
Section 133(6)Section 143(3)

…sallowance of Rs 16,53,013 under section 43B(f) of the Act. 42. Learned representatives fairly agree that this issue is covered, in favour of the assessee by Hon’ble Calcutta High Court’s judgment in the case of Exide Industries Ltd Vs Union of India [(2007) 292 ITR 470 (Cal)] but the said decision, holding section 43B(f) to be constitutionally invalid, is stayed by Hon’ble Supreme Court. As the said decision is stayed by Hon’ble Supreme Court, we see no reasons to interfere in the matter. The disallowance must stand confirmed for the time being. 43. Ground no. 6 is, accordingly, dismissed. 44. In ground no. 7…

DCIT, Circle - 6 Kolkata, Kolkata vs. Uco Bank, Kolkata

ITA No.1329/K/08

ITA 197/KOL/2011[2007-08]Status: DisposedITAT Kolkata18 Mar 2016AY 2007-08

Bench: : Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: S/Shri D.S Damle, FCAFor Respondent: Shri G.Mallikarjana, CIT, ld.DR
Section 143(3)Section 36(1)(vii)Section 36(1)(viia)

…first appeal. Aggrieved, the assessee is in appeal before us . 13.1. We have heard the rival submissions. We find that this issue is covered by the decision of the Hon’ble Calcutta High Court in the case of Exide Industries Ltd vs Union of India reported in 292 ITR 470 (Cal). We find that the revenue had ITA No. 415/KOl/2010 ITA No. 197/KOl/2011 UCO Bank-AM preferred Special Leave Petition before the Supreme Court against the judgement of Calcutta High Court. The Apex Court in Special Leave to Appeal (Civil) CC 12060 / 2008 dated 8.9.2008 had held as under:- “The petition was called on for hearing today. Upo…

Exide Industries Ltd., Kolkata vs. D.C.I.T Cir - 1, Kolkata.

In the result the appeal of the assessee is partly allowed

ITA 170/KOL/2013[2005-06]Status: DisposedITAT Kolkata02 Mar 2016AY 2005-06

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2005-06

For Appellant: Shri Anup Sinha, AR & Shri Bishan Kr.Seal, ACAFor Respondent: Shri Sachidananda Srivastava, CIT,DR
Section 43BSection 43D

…ounting to Rs. 86,73,251/- b y invoking provisions of section 43B(f) of the Act without appreciating the fact that the issue is now covered in favour of the appellant by the decision of the Division Bench of the Calcutta High Court in its own case reported in 292 ITR 470 and defying the principle laid down by the Supreme Court in the case of Bharat earth Movers Ltd reported in 245 ITR 428 (SC) . (b) That the Ld CIT(A) erred in law by confirming the disallowance on the presumption that the Apex Court had stayed the operation of the Calcutta High Court decision, whereas it had merely admitted the SLP moved by the R…

Bates India Pvt Ltd, Kolkata vs. D.C.I.T Cir -8, Kolkata

In the result, the appeal of the assessee is allowed for statistical purpose as stated above

ITA 423/KOL/2013[2009-10]Status: DisposedITAT Kolkata03 Feb 2016AY 2009-10

Bench: : Shri M. Balaganesh

For Appellant: S/Shri Munish ShethFor Respondent: None appeared
Section 143(3)Section 43B

…ld.AR and perusing the material available on record. 5. The ld. AR argued that the issue is covered by the decision of the Hon’ble Jurisdictional Calcutta High Court in the case of Exide Industries Ltd Vs. Union of India reported in (2007) 164 Taxman 9 (Cal)/292 ITR 470(Cal). On further appeal by the revenue before the Hon’ble Supreme Court, the Hon’ble Supreme Court initially had stayed the judgment of the Hon’ble Jurisdictional Calcutta High Court in the case of (referred to supra), but in subsequent proceedings it upheld the constitutional validity of the provision of section and permitted the assesses’ to cl…

Harinagar Sugar Mills Ltd, Mumbai vs. DCIT RG 4(2)(2), Mumbai

The appeal of the assessee is allowed for statistical purposes

ITA 5543/MUM/2015[2012-13]Status: DisposedITAT Mumbai01 Feb 2016AY 2012-13

Bench: Shri Joginder Singh, Assessment Year: 2012-13

Section 43B

…vision for leave encashment was ascertained liability of the company and the same should not be construed as the item covered by section 43B of the Income Tax Act in view of the decision of the Hon’ble Kolkata High Court in the case of “Exide Industries Ltd.” 292 ITR 470. The Assessing Officer however, held that the said amount was remained unpaid and therefore the provision for leave 3 M/s Harinagar Sugar Mills Ltd. encashment was squarely covered under the provisions of section 43B. In appeal, the Ld. CIT(A) also upheld the finding of the AO. 12. Before us, the Ld. A.R. of the assessee has brought our atten…

Exide Industries Limited, Kolkata vs. Addl. CIT, Range - 1, Kolkata

In the result, the appeal of the assessee for A

ITA 189/KOL/2007[2003-04]Status: DisposedITAT Kolkata20 Jan 2016AY 2003-04

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 40Section 90(2)

…e year under consideration had made a provision of Rs.1.51 crores for leave encashment on the basis of an acturial valuation and the same was claimed as deduction by relying on the decision of the Hon’ble Calcutta High Court in assesese’s own case reported in 292 ITR 470 and the decision of the Hon’ble Supreme Court in the case of Bharat Earth Movers reported in 245 ITR 428. The Assessing Officer, however, disallowed the claim of the assessee for provision of leave encashment relying on the Clause (f) inserted in Section 43B by the Finance Act, 2001 w.e.f. 1st April, 2002. The ld. CIT(Appeals) confirmed the said…

M/S. Snowhite Stores Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee stands allowed

ITA 5770/DEL/2013[2002-03]Status: DisposedITAT Delhi11 Dec 2015AY 2002-03

Bench: Shri N.K. Saini & Shri A.T. Varkey

For Appellant: S/Shri Pradeep Dinodia & R.K. Kapoor, AdvocatesFor Respondent: Shri K.K. Jaiswal, Senior DR
Section 143(3)Section 271(1)(c)Section 43B

…arat Earthmovers vs. CIT - 245 ITR 428 to claim that the disallowance itself was bad and, therefore, no penalty should have been levied on the same. He further mentioned that Hon'ble Calcutta High Court in the case of Exide Industries Ltd. vs. Union of India, 292 ITR 470, has held that the amendment to section 43B(f) is unconstitutional and the Hon'ble High Court has held that provision for leave encashment is an allowable expenditure. Ld. AR submitted that the ITAT, Ahmedabad Bench in EIMCO Elecon (India) Ltd. vs. Addl. CIT (2013) 22 ITR (Trib) 380 (Ahmedbad) has held that disallowance u/s. 43B cannot be made…

Metro Dairy Ltd, Kolkata vs. D.C.I.T Cir - 7, Kolkata

In the result, the appeal of the assessee is part allowed for statistical purposes

ITA 731/KOL/2013[2009-10]Status: DisposedITAT Kolkata04 Dec 2015AY 2009-10

Bench: : Shri M. Balaganeshita No. 731/Kol/2013 A.Y 2009-10 M/S. Metro Dairy Ltd Vs. D.C.I.T, Circle-7, Kolkata Pan: Aabcm 8352K Pan: Aaccm 0685L (Appellant) (Respondent)

For Appellant: None appearedFor Respondent: Smt. Ranu Biswas, JCIT, ld.DR
Section 143(3)Section 43B

…4. When the case was called for, none appeared for the assessee. We have heard the Learned DR. We find that the issue under appeal is considered in the decision of the Jurisdictional High Court in the case of Exide Industries Ltd vs Union of India reported in 292 ITR 470 (Cal). We find that it is relevant to get into the operative portion of the said decision of the Calcutta High Court, wherein it was held that:- “11. In this regard the observation of the apex Court in the case of Bharat Earth Movers (supra) is quoted below: The law is settled: if a business liability has definitely arisen in the accounting year…

Avery India Ltd., Haryana vs. D.C.I.T, Cir- 1, Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 601/KOL/2013[2006-07]Status: DisposedITAT Kolkata27 Nov 2015AY 2006-07

Bench: : Shri Mahavir Singh & Shri Balaganesh

For Appellant: Shri Saurabh Kedia, ld.A/RFor Respondent: Shri D. Naskar, JCIT, ld.DR
Section 143(3)Section 28Section 37(1)

…e (f) of Section 43B providing for allowance of leave encashment on payment basis is arbitrary, unconscionable and de hors the Supreme Court decision in the case of Bharat Earth Movers, as held by the jurisdictional HC in the case of Exide Industries Limited (292 ITR 470)” 4.1. The Learned AR relied on the decision of the Jurisdictional High Court in the case of Exide Industries Ltd vs Union of India reported in 292 ITR 470 (Cal) wherein the provisions of section 43B (f) of the Act has been struck down as arbitrary. However he fairly conceded that the Hon’ble Apex Court though had stayed the operation of the jud…

DCIT, Circle-6, Kolkata vs. M/S. Integrated Coal Mining Ltd, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1138/KOL/2012[2008-2009]Status: DisposedITAT Kolkata13 Nov 2015AY 2008-2009

Bench: : Shri M. Balaganesh

For Appellant: Shri J.P Khaitan, ld.ARFor Respondent: Shri G.Mallikarjuna, CIT, ld.DR
Section 143(3)Section 14A

…provision for leave encashment based on actuarial valuation, by invoking the provisions of section 43B of the Act.”. 4.2. The Learned AR relied on the decision of the Jurisdictional High Court in the case of Exide Industries Ltd vs Union of India reported in 292 ITR 470 (Cal) wherein the provisions of section 43B (f) of the Act has been struct down as arbitrary. However he fairly conceded that the Hon’ble Apex Court though had stayed the operation of the judgement of Calcutta High Court initially but later, it had directed the assesses to comply with the provisions of section 43B(f) of the Act and pay taxes ther…

JCIT(OSD), Circle - 8, Kolkata vs. M/S. Oberoi Hotels Pvt. Ltd., Kolkata

In the result, assessee’s appeals in ITA Nos

ITA 233/KOL/2012[2007-08]Status: DisposedITAT Kolkata15 Oct 2015AY 2007-08

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri R. N. Bajoria, Sr. Advocate &For Respondent: Shri Debasish Roy, JCIT, Sr. DR
Section 143(3)Section 14A

…nt of claim of provision for leave encashment of Rs.2,80,926/-. 2(b) That the Ld. CIT(A) failed to appreciate that the action of the Assessing Officer is against the principle laid down by the jurisdictional High Court in the case of Exide Industries Limited 292 ITR 470.” 9. Briefly stated facts are that the assessee claimed deduction on account of provision for leave encashment based on the decision of Hon’ble Calcutta High court amounting to Rs.2,80,926/- in the case of Exide Industries Ltd. Vs. Union of India ITA Nos. 233 & 1041/Kol/2012 Oberoi Hotels Pvt. Ltd.. AY 2007-08 & 2008-09 (2007) 292 ITR 470 (Cal).…

Oberoi Hotels Private Limited, Kolkata vs. DCIT, Circle - 8, Kolkata

In the result, assessee’s appeals in ITA Nos

ITA 230/KOL/2012[2007-08]Status: DisposedITAT Kolkata15 Oct 2015AY 2007-08

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri R. N. Bajoria, Sr. Advocate &For Respondent: Shri Debasish Roy, JCIT, Sr. DR
Section 143(3)Section 14A

…nt of claim of provision for leave encashment of Rs.2,80,926/-. 2(b) That the Ld. CIT(A) failed to appreciate that the action of the Assessing Officer is against the principle laid down by the jurisdictional High Court in the case of Exide Industries Limited 292 ITR 470.” 9. Briefly stated facts are that the assessee claimed deduction on account of provision for leave encashment based on the decision of Hon’ble Calcutta High court amounting to Rs.2,80,926/- in the case of Exide Industries Ltd. Vs. Union of India ITA Nos. 233 & 1041/Kol/2012 Oberoi Hotels Pvt. Ltd.. AY 2007-08 & 2008-09 (2007) 292 ITR 470 (Cal).…

DCIT, Circle -8, Kolkata vs. M/S. Oberoi Hotels Pvt. Ltd., Kolkata

In the result, assessee’s appeals in ITA Nos

ITA 1041/KOL/2012[2008-2009]Status: DisposedITAT Kolkata15 Oct 2015AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri R. N. Bajoria, Sr. Advocate &For Respondent: Shri Debasish Roy, JCIT, Sr. DR
Section 143(3)Section 14A

…nt of claim of provision for leave encashment of Rs.2,80,926/-. 2(b) That the Ld. CIT(A) failed to appreciate that the action of the Assessing Officer is against the principle laid down by the jurisdictional High Court in the case of Exide Industries Limited 292 ITR 470.” 9. Briefly stated facts are that the assessee claimed deduction on account of provision for leave encashment based on the decision of Hon’ble Calcutta High court amounting to Rs.2,80,926/- in the case of Exide Industries Ltd. Vs. Union of India ITA Nos. 233 & 1041/Kol/2012 Oberoi Hotels Pvt. Ltd.. AY 2007-08 & 2008-09 (2007) 292 ITR 470 (Cal).…

Oberoi Hotels Private Limited, Kolkata vs. DCIT, Circle -8, Kolkata

In the result, assessee’s appeals in ITA Nos

ITA 1030/KOL/2012[2008-2009]Status: DisposedITAT Kolkata15 Oct 2015AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri R. N. Bajoria, Sr. Advocate &For Respondent: Shri Debasish Roy, JCIT, Sr. DR
Section 143(3)Section 14A

…nt of claim of provision for leave encashment of Rs.2,80,926/-. 2(b) That the Ld. CIT(A) failed to appreciate that the action of the Assessing Officer is against the principle laid down by the jurisdictional High Court in the case of Exide Industries Limited 292 ITR 470.” 9. Briefly stated facts are that the assessee claimed deduction on account of provision for leave encashment based on the decision of Hon’ble Calcutta High court amounting to Rs.2,80,926/- in the case of Exide Industries Ltd. Vs. Union of India ITA Nos. 233 & 1041/Kol/2012 Oberoi Hotels Pvt. Ltd.. AY 2007-08 & 2008-09 (2007) 292 ITR 470 (Cal).…